Paris-based Sequans Communications sold 1,025 bitcoins in the first quarter of 2026, cutting its holdings of the digital asset by nearly half as the IoT semiconductor maker grapples with declining revenue and mounting losses alongside a treasury strategy that has turned from ambition to liability.
The sale reduced Sequans’ bitcoin position from 2,139 BTC at the end of 2025 to 1,114 BTC on April 30, marking the second major drop in six months for the subsidiary that last year announced plans to collect 3,000 bitcoin as a “long-term store of value”.
Financial stress shows up in numbers. Sequans reported revenue of $6.1 million for the quarter ended March 31, down 24.8% from $8.1 million a year earlier. A year-on-year comparison reveals the company’s vulnerability: last year’s period included license income and significant services from Qualcomm that did not reappear, revealing a fundamental weakness in product sales.
Although product sales rose 45% from the year-ago quarter, gross margin squeezed to 37.7% from 64.5% as lower-cost hardware displaced profitable license revenue. For a cash-burning company, changing revenue mix poses a challenge.
Sequans’ Bitcoin strategy became a liability
Bitcoin holdings that CEO Georges Karam once held as a balance sheet asset have been the source of significant losses. Operating losses reached $50.5 million in the quarter, driven by $29.3 million in unrealized impairment charges for bitcoin holdings and $11.7 million in losses realized on the sale of digital assets.
The company used the proceeds of the bitcoin sale to redeem revolving debt and fund the American Depositary Share purchase program, a reasonable step to reduce debt but underscoring how the treasury’s strategy has shifted from accumulation to liquidation.
The remaining bitcoin holdings are very crowded. Of the 1,114 BTC held as of April 30, 817 bitcoins – representing 73% of current assets valued at $62.3 million – remain pledged as collateral for $35.9 million in outstanding convertible notes. Pledged bitcoin exceeds the value of the loan, indicating more cooperation required by lenders who are wary of cryptocurrency volatility.
The remaining debt is scheduled to be redeemed on June 1, 2026, after which all bitcoin will be unrestricted and available for sale. Whether Sequans will keep those assets or continue to close to fund operations remains an open question.
Net loss was $54.3 million, or $3.73 per diluted ADS, compared to $7.3 million, or $0.29 per ADS, in the year-ago quarter. Even on a non-IFRS basis—which excludes impairment charges, stock-based compensation, and accounting adjustments related to convertible debt—the net loss was greater at $20.7 million, or $1.42 per ADS.
CEO Georges Karam framed the bitcoin sale as “a decisive step to simplify and strengthen our balance sheet,” while highlighting momentum in the company’s core IoT semiconductor business.
He cited growing backlogs, growing project wins, and customer interest in Cat-M, Cat-1bis, and 5G eRedCap connectivity solutions, as well as new RF transceivers for drones and defense applications.
Sequans shares have fallen 51.5% in the past six months to $3.01, reflecting investor skepticism about both bitcoin’s strategy and its core business trajectory.
The firm ranks 40th among publicly traded firms holding bitcoin, well behind Strategy’s 818,334 BTC and Twenty One Capital’s 43,514 BTC.
